Part II : Classification of Goods
- Harmonized System

The H.S. based tariff is logically structured and divided into twenty-one sections. For the most part, commodities are arranged in these sections according to the decree of manufacture or processing.

Within the twenty-one sections there are 99 chapters. Chapter 77 is reserved for possible future expansion. The last chapter, 99 is set aside for special use by individual countries.

Chapters are arranged according to levels of processing, with primary commodities classified in the earlier chapters and technically more complex products treated later on.

Each chapter begins with a title page. Section and chapter legal notes precede certain chapters and sections. However, these notes only define the scope and limits of the chapter and sections they precede. Following the chapter notes, you will find the classification numbers of all products covered by the chapter.

Structure of the Classification Number

Classification in the HS is a systematic process. To use this process, it is essential to understand the structure of the classification number.

With the entry of Lao PDR in ASEAN, the classification number consists of eight digits. This eight-digit number is sub-divided at various levels to provide greater details and definitions for a product than the previous level at the six digits.

Each level is identified as follows:

01.01 HEADING
01.01.20 1st SUB-HEADING
01.01.20.00 2sd Sub-Heading

International Lao and ASEAN
Requirement Requirement

The first six digits represent the international portion of the classification number and are the numbers that will be used by all countries acceding to the Harmonized System. The last two digits reflect the Lao and ASEAN requirements for tariff and statistical purposes.

The structure of the classification number, i.e., the breakdown of the number by heading, and sub-headings is the basis for classifying your product in the H.S. Once a product has been located in a heading, an appropriate eight-digit number of sub-headings within the selected heading must be determined.